Willamette Valley Bank exits residential mortgage lending

"Willamette originated approximately $233 million in mortgages over the past 12 months, down sharply from $460 million in 2023, according to mortgage technology platform RETR. The bulk of its production consisted of conventional and purchase loans. Data from the Nationwide Multistate Licensing System (NMLS) shows the bank had 13 sponsored loan officers as of Thursday."

"The mortgage segment has been dominated in recent years by large-scale wholesale mortgage companies and financial technology firms, prompting many banks to reassess their business models. Embrace has also entered into a partnership with New York-based Amalgamated Bank. Meanwhile, Philadelphia-based Firstrust Bank has partnered with MortgageCountry LLC."

"In October 2025, Puerto Rico-based Popular Bank exited the business as part of a profitability strategy that included the closure of four underperforming branches in the New York metro area, according to chief financial officer Jorge Garcia. A month before that, OceanFirst Bank also stepped away from mortgage originations, opting instead to partner with Embrace Home Loans."

Willamette Bank originated $233 million in mortgages over the past 12 months, a significant decline from $460 million in 2023. The bank's production focused on conventional and purchase loans, with 13 sponsored loan officers remaining after 39 departures over the year. This pullback reflects broader industry trends as multiple banks reassess mortgage operations. Popular Bank exited mortgage originations entirely in October 2025 as part of profitability improvements. OceanFirst Bank similarly stepped away, partnering with Embrace Home Loans instead. Industry observers note that large-scale wholesale companies and fintech firms have dominated the mortgage segment, prompting traditional banks to reconsider their business models. Some banks maintain mortgage services through partnerships, such as Firstrust Bank's arrangement with MortgageCountry LLC, where loans originate under the bank's name while MortgageCountry provides operational support.

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